Apple Takes Wraps Off Mac App Store

Apple Inc. delivered on plans to launch an app store for its Macintosh computers Thursday as it seeks to extend the popularity of the store concept beyond its mobile devices.

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The Mac app store could stoke more interest in creating software for Macs among independent developers.
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The company said the new store initially contains more than 1,000 computer apps in 21 categories, such as productivity, games and education. Among the apps are some by Apple, including a Pages word processor and Keynote presentation software, which will each sell for $19.99.

The store will also include contributions by third-party developers, such as apps from the social-networking site Twitter Inc.; Evernote Corp., which makes a free digital-file-management app; and the design-software company Autodesk Inc., which launched both a free and $29.99 professional version of its paint and drawing software SketchBook. Rovio Mobile Ltd. is also offering its Angry Birds game, a hit on Apple's iPhone and iPad, for $4.99.

"We think users are going to love this innovative new way to discover and buy their favorite apps," said Apple Chief Executive Steve Jobs in a statement.

The Mac App Store is seen as a way for Apple to capitalize on the popularity of its iPhones and iPads to sell more computers. While Macintosh sales have been strong—increasing 22% in the quarter ended in September—that business has been overshadowed in recent years by the faster-growing mobile-device businesses.

Apple's new app store is also an indication that Apple is aligning its Mac strategy more closely with that of its mobile devices. Last October, for example, the company unveiled a new line of thin MacBook Air notebooks that have no disk drives. They rely instead on the flash-memory chips used in iPhones and iPads that contribute to longer battery life and lighter weight and allow computers to boot up faster. Mr. Jobs said Apple believed that was the future of notebooks.

The company also previewed a new version of its operating system with features that allow users to organize their screens and manipulate applications in a way that's similar to the iPhone and iPad.

Apple's new store has the potential to be a new revenue source for the company, which will take a 30% cut of revenue. The mobile app store, which includes more than 300,000 apps, already makes about $2 billion to $2.5 billion a year for Apple, according to a rough estimate by Kaufman Brothers.

The store could also stoke more interest in developing software for Mac computers, which have not been as attractive a target for independent software makers as the bigger market of PCs that run Microsoft Corp.'s Windows operating system.

The Mac App Store will also provide application developers with a new opportunity to expand their businesses. "I'm genuinely excited about this," said Phil Libin, chief executive of Evernote. While the company already has software for the Mac that can be downloaded online, Mr. Libin said the app format will be much easier for consumers to get.

Online-auction site eBay Inc. also said it is working on a Mac app that it plans to launch this quarter. Steve Yankovich, vice president of eBay Mobile, said it plans to take advantage of the always-on ability of the apps to offer features that it can't include on its website, such as notifying users when bidding on an auction item is about to end. "If I'm just in the browser I need you to launch the browser, but if I'm an app, we can grab your attention," he said.

The announcement from Apple comes as the tech industry is gathering in Las Vegas for the annual Consumer Electronics Show. Companies from Taipei, Taiwan, to Round Rock, Texas, are expected to show off a bevy of new gadgets, ranging from smartphones to tablets, all aimed at taking a chunk out of markets that have been reinvigorated by Apple products. The Cupertino, Calif., company is not attending the show.

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